ZENV - Earnings call transcript Q1 2022

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Operator

Good afternoon and thank you for standing by. Welcome to Zenvia’s Q1 2022 Earnings Conference Call. Today’s speakers are Mr. Cassio Bobsin, Zenvia’s Founder and CEO and Shay Chor, Investor Relations Officer. Please be advised that today’s conference is being recorded and the replay will be available at the company’s IR website where you can also access today’s presentation. participants a all mode. time, this are listen-only in At a there answer After remarks, be question the prepared will and session. [Operator instructions] your Mr. of welcome to Now I speakers would for like one today; CEO. and Founder Bobsin, Cassio the Sir, yours. is floor

Cassio Bobsin

to Zenvia’s and year. a of strong off founder I our Hello, everyone, results, Today and QX Earnings demonstrate Cassio CEO. key Call. the present the to which start ‘XX will first-quarter of Bobsin, I’m highlights we’re welcome that

very Let’s start QX X. quarter with Zenvia. was again strong for a Slide

just gross SenseData. revenue points for Organically, and our ‘XX DX up quarter, XX%. XX% the robust stunning QX the expansion deliver a our year-over-year went margin acquisitions to margin and doubled almost including both It’s to the Revenue on gross QX in expanded XX% continue reached We ahead profit numbers X.X% of while growth effects of growth ‘XX, compared the are gross guidance. of ‘XX basis. QX for to

bottom processes. Let’s our now take of respective and acquisitions a closer look at the integration

fully for more with of our extracting offer Following comprehensive fully also have illustrations We the and a and team much now that up we cross-selling. process. process products journal integration customized co-side, the and integrations in want Also, in integrated. customer integrated suite and are DX journeys. are activities structures initiated services mid-February, their brands still bar began the teams on suppliers raise in and not the to SenseData can including systems, to highly synergies decision back-office speed

wake in to and in cross-selling the expect platform the start We of QX.

closing of the transaction Movidesk, Tuesday. we last to announced As the

QX. in integration start to expect We

designed of the XX most is attest the clients terms years, helpdesk It’s to opinion. and currently global BRL user-friendly, And an our a advantage ARR to less need, complementary also for huge talk companies. our to in six In shifts. charged the platform attract ecosystem. just really Brazilian and excellence. importantly the features in of absolute in solution cost-benefit a next Movidesk this Portuguese, customers to slide. is pay versus more is for pains perfect Let’s about easy-to-use platform’s competitive [indiscernible] detail addition an of grew and Their focused solving in Movidesk providing X,XXX sites million. who are they our review Movidesk than not the Major other

our margin to started customer end-to-end unique BRL brands XX The margins impact approximately own provide strategy with double SaaS of Just experience a Latin company with a to profile top of of in with XX% SaaS this adds communications gross forward. possibly moving revenue acquisition M&A it ended aiming America. Movidesk platform for that its XXXX. company around compare, to the growth, accelerated recovery revenues a will of ‘XX of given Zenvia On which off model, high a position million, our as unified

we though We already acquired benefits gross were in to are other A. companies Even very in with exact structure exact had without starting strategic all the companies begun that words, our this we proud to visible plan, even the have growth in Plan we Movidesk. revenue margin the acquired only capabilities have the and In our are our expansion. just and to consolidate

In substantially of we were from reached our of use from increase also ‘XX, X% and to up We’re very spending organic our revenues growth proceeds investments XX% the R&D our proud ‘XX. how IPO the in able R&D. to in

higher through at environment of demanded role we launched the message Campaign April the effortless, first be prompt the to new engagement happened. conversation will effective growth strategy. allowing of this level next to products creator profitability. Campaign that and the intuitive, and at attests We so with customer the was The highly efficiency convert to also the which better manage channel Zenvia to another is a analytics of of is with journey through couple be most in launch of experiences our time customers active With position. initiate of its indirect available our launch leverage in the their their a channel reactions orchestration. in contributing they’re applying call marketing a the customer most the management us tool and current and expect to But which This companies It’s results. our can scheduled used marketing and moment. from centralized now data suitable Zenvia significantly for created actions combination program to and in better allowing into the in and features channel. that campaign an And also to which react process achieve most base present can that through success can what of potential continue strategic and the our in is to will a to improve a always a The loyalty meet years using essential interact various decision-making consumers possible an campaigns WhatsApp solution, metrics the sent need, direct across companies the one has arrive that a contact regardless different channels. tool period to channels allows clients to messages users ultimately solution

benefit to transform we brands, and like journeys, into us. analyze to experiences As ultimately them every step of I’d them, customer superior the say, the

contributing accelerated were will this and that see, SaaS and pass discuss company. can Shay for financial to in metrics a to IPO detail, I more available proceeds be be critically we M&A into us our you which now allocated As R&D, who to put Q&A. from key transformation at where to will our exactly our the moment plan the

Shay Chor

Thanks, everyone. Cassio. And hello,

results. Let’s take a dive our into deeper

solid the Our and retention, was acquisitions. growth, in greatly organic combination the by of revenue quarter boosted client

Our client XX.X went clients. base thousand to up XX.X%

mentioned, XX% to up our combination percentage our XX year year as with as BRL on XXXX. the XXX% can guidance leading XX%. chart While by SenseData our And DX The right. you the organic the provided the over above for see revenues organic of this in total of million growth both ended grew rate Cassio points up and from and XX.X net revenue our revenue growth organic total expansion at and quarter brought an

important ‘XX. quarter is less guided highlight for Termination our the what quality Another SMS we from of Out line revenues. total, our revenues the the with call in XX% earnings QX Beyond for of were in

the With as see we right in the be the the can of profitability as you this is mix mix And that revenue is slide. to Movidesk in next our XX%. of expect May, indicator closer the moving best to consolidation improved direction

As with Adjusted we doubled expanding ‘XX to when adjusted gross our we expand points QX ‘XX IPO, promised percentage continue X.X during to QX margin XX%. gross to the we almost our compare profitability. profit

products, to XX% SenseData gross quarter the As And in or we our In diversification absolute Termination, right, recording from already the Beyond profit new Movidesk, adjusted cross-selling ‘XX company. already Campaign. even quarter alone, in without our of earning first have terms. become a is such you strategy gross acquisitions starting can consolidate entire which SMS adjusted achieved to and to chart the comes a this of profit see almost gains of year Zenvia as one-third the our recent SaaS in the from result direct

to in we and QX adjusted adjusted acquisitions BRL X.X and EBITDA, includes of negative was related of non-GAAP million was Sirena. QX non-cash BRL these EBITDA our negative number the X.X expenses expenses, terms in exclude earn-out In TotalVoice When ‘XX million.

ahead. makes year, are a and strong can and which we us confident this, the With our start of we really highlighted, the conclude your Cassio our questions. opportunities XXXX prepared now guidance about take we to off to rate As remarks excited

Operator

Itau analyst Cristian [Operator Faria, instructions] comes Our BBA. question first from sell-side from

Unidentified Analyst

is my here question profit regarding I gross think the So margin.

that we quarter over products And almost mix know So SMS is here the the saw of higher business. we of last when flat stayed that compare sense we we year when a to quarter. the then of had of knowledge quarter the

point here last to this margin the I related driven from quarter address if SMS improvement that the we this X.X% the to we is what the main the has and here? think recovering it’s saw improvement in need business, gross that that

Shay Chor

question, the Thanks Cassio Cristian. through let for this. I’ll run

Cassio, main some important been main This on client. reason. talks from pass lot and large we’ve concerns prices is in want questions happened And the in on themselves. And going to that? about another add reason the you I with because QX negotiated a and to that’s that business. It do we ability getting their Before clients. inflation results some of for investors speaks to it’s commoditized guess QX the happen anything with was in this pass-through it, Cassio about again

Cassio Bobsin

SMS’s over year quarter-over-quarter the we up big a on see of at to trajectory. trends gross a SMS why is a having There’s year, margins then at whole better can the look considering of seasonality prefer and growing revenue the our so here bit and Beyond those margin moving analysis. the through company up to That’s we faster pace the sides

Unidentified Analyst

Okay, thanks.

Operator

comes now opening Please audio sell-side analyst question [Operator Instructions] live. next are ahead. move go from your can the on. you UBS..We Andrei The that now And from we so ask question

Unidentified Analyst

the make for opportunity the begin. this questions of and Cassio Hi, to here I a and to couple call Thanks question. Shay. have

Is is are or front on specific maintenance give guys quarters? the margin On that in and price on there was the if volume. what you of more you and base and this the a you in any Movidesk main on on first in comfortable Movidesk integration. the gross growth aspect process believe was challenging could is second organic growth And XXXX of the the terms little how more upcoming of increase one color one, seen driver it

Shay Chor

come let’s and do back to start with Cassio, then we want talk about On the you Movidesk, to… that. Movidesk,

Cassio Bobsin

please. Yes,

participate was manage Movidesk last the that acquire the on enter to first the our and IPO possibility our in IPO Movidesk IPO the for and strategy deal, the to one plan whole with a precede our specifically of on set that First support of M&A rules the and the was for and to We companies for we adds Movidesk to markets plan. on wanted companies lots finished have phase is customer demand it years based structuring their of customer improve of currently opportunities their we solution, all companies from of of experiences what so they That’s important help for on a part to the solution. demand by experience by of Zenvia with there’s better lot the very a say there’s process support. kind to that coming that customer for because adding that lot a us customers. And combining of journey the

Movidesk we the bring for of core So from chatbots, over both the a platform journey customers coming to demand and starting to we add come opportunity will other happening, into plan to will over from Movidesk that from of time integration, but customers of the that’s data having all customers. Zenvia our up integrating the use And lot benefit have there’s already that being hugely things lots their other platform we platform, one by not being integrate Movidesk these And customers as so Zenvia. the core can communication of of solutions we of even automation of to from cross-sell to with our suite means Movidesk our mentioning we solutions whole platform. of managed used side the already the expect lots to which channels solutions, having value from attached add the solutions on companies benefit also to that

very we’re about So excited that.

opportunities the first value customers and from at same at lots the Movidesk. unlock looking Zenvia days integration, in to of of also terms are of of for But to things time, coming from lots We do.

Shay Chor

fast higher Cassio, And plants, combination product expansion. SenseData, more the revenue more net that relevant, is volume-based net and pestering growth. only mentioned revenue right? you, the integration as And of over combination the -- revenue been be base will also inflation from upsell talking important XXX% we Movidesk revenue on SMS revenue The web. It’s client not net business, cross-sell a that. obviously, of of Cassio and integration obviously a it’s more on continue net and about XX,XXX on forward, perspective a expect majority of healthy is plays and first question, the almost I has a for role, to the base the your a the a some And relevant Andrei, expansion expansion with one expansion. right? We’re have with question going been the of but mentioned, So expansion sales. client net but one as I but here a

How of and You R&D? about first going in prepared you’ve mentioned elaborate your M&A between your you remarks the forward balance M&A. things? phase seen plans Can

Unidentified Analyst

you. Thank it. Got

Operator

you for here on I web. have one Cassio question the

You forward R&D? your Can between mentioned M&A M&A. are the in your prepared seeing first balance phase going things? remarks How you elaborate and of about plans you

Cassio Bobsin

Yes.

innovation coming from That’s And combination from adding M&A. been this the lots and of have been why structuring was they of R&D, R&D. of historically, Looking acquisition. our growth IPO, M&A we’ve these kind through capabilities lots since of where of Movidesk

a had we get revenues better to almost idea, Just like X% being invested R&D. our XXXX, of before in in

a a portfolio, solutions we to doing first a perspective, suite to platform. acquired our looking our have of we more terms is and Zenvia Sirena in and And And investments we whole complete we what of consolidate of what our we more did. recently in and of the can before acquired we Smarkio, the evolving to was launch for solutions that we weeks what resulting to having XX. terms our Movidesk. combine couple portfolio more customers. that capacity We complete these platform. Nowadays, we’ve then set is R&D just our examples evolution of launched were afterwards, around understand ago is And of Zenvia as position our the Campaign from been one have that’s what plan IPO the of SenseData bringing of the IPO and of that M&A And the DX in phase needed with Campaign. and during R&D, of that exactly in And IPO CX strategic

our we terms portfolio. understand these have plan with of set So of in fulfilled solutions, we

future, this we that of so on opportunities can solutions, more we more, evolve the R&D strategy we intend And market have more Of the intend invest demand. even at capture to strategy to consolidation, phase we our course, in to market looking lots because we M&A of keep of expect proceeds a our happy open and we, to investing keep evolving and to on and R&D for platform cover XX% core active in also we of side its so the that both specific of investments to that’s in move that IPO some capabilities, why markets, indeed, strategy And solutions of combine platform phase markets. at the niche more launching terms the specific its as of also we in possibilities can to more will what and more we’re mission of to And course, niche we direct [indiscernible] acquisitions our terms also second of phase. with the the thesis consolidate specific although very expansion, international bring of that having value use first terms

Shay Chor

pass-through here. web inflation us small can in that on large for you you and clients the from one Cassio, Can the Another goes? elaborate more process how has understand been SMS different clients? how the help on been the businesses

Cassio Bobsin

Yes. In Brazil, we’re used inflation. to

customers couple to set we we a so more that’s to margin. structuring something last and our new not and predictable the environment. been is last of quarters these over have providers have us. a that’s part What were It’s years we able So whole of of attach that economic to over fulfill can

can impact the sort same through contract the So on time at base. customers whenever we our inflation to these and pass of have we any

but avoid be that we so of margins peaked. movement kind kind And would that any of and inflation great,

have So and of of at of way tied all terms now we revenues almost to increase some in any cost our structure. kind

Shay Chor

linked you can discuss December from forward? earnouts? me Can start you your to that this. especially the web number ‘XX EBITDA let share one And going Another for targets Movidesk with impact here. on So any are

we level at only for around not go for are not specific can period. questions? next M&As, structure some As gross based The and targets on up on We all of depend the Roger, point of XX%. Movidesk paying for here And that end to for gross specifically, it’s We’ve we’re is the profit repoll you for times around only Movidesk. now, a any EBITDA year. that XX% we are sharing been been can earn-out eight discussing on between results. the and would specific margin paying six believe

Operator

Okay. have check sell-side from Then analyst [Operator we UBS. Okay. I'm another Andrei question instructions] going to from here.

Unidentified Analyst

escalate the solution project, share strategy size details service? what's the monetize a Campaign that can also could with If you more the with for little timeline? what to and reach to us Zenvia the on expect us this and in On just share you you new

Cassio Bobsin

one. direct for Yes. for question. go the this I'll thanks Andrei,

to with a Looking lot communication bringing more We been and kind to at well grow expect the of that into us. with launch. traction doing it's bringing been have first at a campaign. upsell this, that upsell but acceptance us integrating of product an is a product campaign the customers of product sort the and that, that some of We've And a offering manage they fast. It's them part helping value a we of new portfolio. a terms recent already very the the actively. customers that about That's product. use for of have in beginning how some as We're marketing hired with company channel and our for as demand. more of with of want with scale. important this management of of customers We lots than come pretty course can the pretty to customers to evolve evolve demand this like solution customer, along It's hundred

reason they The customers then product the to have, are Zenvia can are very Sirena so process, into along can and that a to from SenseData, for we to they we that This on, of and instance, something combination use use data been bring with another the the different we is solution. very customers dots of when solutions contextualize customers. Zenvia looking also being for Campaign. of but by into solution we that's is course, your why and with with that the expectations that that Then future, have the SenseData data as customers the have main of by starting our and combination on campaign feedback with that solution be combining goes they not of databases that for why leverage along connect We been expect own over really a good only other now them and will it having our that. with interest all so solution see and can combining the we've journey, to to not a this for we a this systems solutions of managed to sales have Campaign campaign customer your something working time and strategy and important own campaigns have combine same other, we evolving other customers we That's different kind on use having is, kind going combination products One already the core have, evolving is already also traction solution, only platform. solutions engage the but a that acquiring as better leverage. launching these from

Unidentified Analyst

you. Okay Cassio. Thank

Shay Chor

Another us OpEx help and you Cassio were help in full the us better you you your here million compares to here some of given to understanding the ask but talking swings only. start XX shared in up, XX% and quarter? year about how I'll R&D Can million R&D OpEx is the your earlier one then So I'll web commentary. down, from XX here. the QX G&A recent in R&D

throughout it on in of get capitalized As the right? R&D So XX% can the time. looking was XX%. you when revenue But quarterly around the basis closer volatile, we to spend a so QX add

expect plus and So OpEx level. look as in full-year percentage remain into XX% a basis CapEx to revenues you should we of this R&D

to sales. depends between marketing environment On OpEx if economic and room be on to grow, the of or lines, if It from there difficult and range. XX% other expect It believe you XX% can our we accelerate, are a ability we should things is decelerate. and should sales

look because and We if G&A. into Cassio, XX% SMS our expenses don't of million. other expense it on revenues. XX% between usual, had one-off, with a is a XX consider booked that add see expenses. I SMS you'll know, although we anything as we as range If terminated we specifically business that results, but was -- should volumes one-off And it's one you it in contract had There you to don't want So unused

We help And it expect new that's revenues until percentage on with of can on should offset where going to just you G&A. end. it be? G&A this more contracts than Cassio, us forward as year

Cassio Bobsin

we Yes, as have we close future Shay, earn-out near period it's considered yes. is expense the the the that Sirena won't because for And to also, the important have highlight that earn-outs in G&A in end. to

a get the not of that considered will G&A. QX, that's on a as matter us that is expense year anymore. and we an this upside considered G&A, So everything, don't specific is this on as expense have expense saving in but There auditing but

that's important one that fact the G&A. in point in So have we

Shay Chor

questions don’t have Roger. Can you We anything more check web as live? any the as now. of on shown

Operator

going back just this closing moment. one for Bobsin our conference would the I’m remarks. I turn like concludes to check Cassio his answer question Mr. And in to to session. and

Cassio Bobsin

very Well, we’ve a to and the plan we’re very that been EPO. I time. promised the it, I’ve that. I’ve talk about looking intended we thank launch exemplifies We’ve really much doing, the doing. on And delivering last product what been bit future excited and before, at last acquisition never we’ve what executing mentioned that the been been you as for

future synergies and a ready that perspective on of gives these to hat. our we’ll our not We’re the growth, phase from us for only guidance, in very next be these our future, at capacity the to for strategy deliver now extract all looking all evolve companies, but the also substantially the starting to integrating acquisitions good

the very time. you you see and much next thank time So for

Operator

you has attending concluded. your area disposal questions. presentation. is for to today’s by Thank any additional at conference Zenvia’s our now This answer

Have disconnect. day. a nice now may You

Zenvia (ZENV) 8 May 222022 Q1 Earnings call transcript